NRB Deputy Governor Highlights Economic Improvement Due to Flexible Monetary Policy Provisions

Deputy Governor of Nepal Rastra Bank (NRB), Bam Bahadur Mishra, has claimed that the flexible provisions in the monetary policy have led to a gradual improvement in the national economy. Speaking at an interaction event titled “Work Direction of Monetary Policy: Loan Expansion and Auto Business,” organized by the Economic Media Association Nepal during the NADA Auto Show 2024 in Kathmandu, Mishra emphasized that the deliberate flexibility in monetary policy has been instrumental in revitalizing economic activities through regulatory reforms.

“The liquidity levels in banks and financial institutions have been increasing, and both the automobile and stock markets are gradually becoming more functional,” Mishra stated. He also pointed out that the current monetary policy provisions are positively contributing to the rise in the stock market.

Mishra further mentioned that the NRB is actively working on policy initiatives to promote the use of electric vehicles, aligning with the country’s broader goals of fostering an eco-friendly transport system.

Adding to the discussion, Sunil KC, President of the Nepal Bankers’ Association, expressed the banking sector’s commitment to supporting initiatives that promote electric vehicles. Upendra Paudel, President of the Confederation of Banks and Financial Institutions Nepal, underscored the importance of making the automobile business more productive and encouraging the use of electric vehicles to reduce the import of petroleum products and enhance the consumption of domestic energy.

Karan Kumar Chaudhary, President of the Nepal Automobiles’ Association, also pledged to expand the availability of charging stations to meet the growing demand from consumers, supporting the transition to electric vehicles.